Home Finance Know What Is Fleet Insurance

Know What Is Fleet Insurance

by Lincoln Les

Have multiple cars and vehicles running under your banner? Don’t know which insurance to go for? Would there be multiple insurances or a single one would cover it all? Fleet insurance can be the answer to all these questions.

Fleet insurance refers to complete package insurance for businesses with two or more automobiles. Therefore, you wouldn’t have to apply for multiple insurances and it will all be covered under a single policy. Therefore, when the insurance policy has to be renewed, you need not worry about multiple policies but one fleet insurance.

This business policy is mainly for commercial purposes. Any business house registered with proper authorization and having two or more vehicles can take advantage of this insurance policy. Now is it understandable why it is termed as a fleet? Because all your vehicles’ insurances will be clubbed under one banner- an army of vehicles fully insured.

Next, one must be wondering what are the vehicles which come under this insurance category. Good news! All types of vehicles, as long as they are used for commercial purposes, come under the insurance cover. Examples being, buses used for transporting employees of a firm, trucks used in construction sites, bikes used for courier delivery, and so on. All of these vehicles should be registered under the banner of the same firm in order to qualify for fleet insurance.

The number of vehicles that a company can club under fleet insurance is roughly 500. And the driver of these vessels, are they covered under this insurance policy? In most cases, there is Employer’s Liability Insurance in case of any damage or injury caused to the employee. But, under the comprehensive package of fleet insurance, insurance companies provide this feature as an add-on.

With this, now let us learn about the three common types of fleet insurance:-

  1. The first type is third-party-only coverage. Under this, any damage incurred by other people or vehicles, owing to your driver’s fault is covered. This is the primary level of fleet insurance, meaning the most basic form. Cheap fleet insurance starts with this type. However, damage to the owner’s property wouldn’t be covered under this policy.
  2. The second level involves third-party damage repayment and damage incurred due to fire and theft. So, any vehicle which gets stolen or lost to an explosion due to fire will be looked after. Another bonus for third-party damage in this type includes paying for accidents.
  3. The last one is the comprehensive package. All that has been mentioned above, from third-party damage to fire and theft, along with that here we have damage incurred by owner’s vehicles.

Fleet insurance can be both cheap and expensive depending on the type chosen, the number of vehicles, and the type of vehicles. The condition of vehicles is an important factor for insurance purposes.

When seeking fleet insurance price, you will come across various questions being asked about your vehicles, type of business, as well as drivers. Compare fleet insurance price from various websites and then, make your decision.

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